updated 11:07 pm EDT, Wed June 27, 2012
Council gives Apple a 79 percent tax break over 10 years
Updating our earlier story, the Reno City Council voted unanimously earlier today to award Apple a significant tax break (PDF file) over the course of 10 years if the company goes through with building two large facilities near the city. The first will house additional servers for iCloud, while the second will be a smaller administrative center in the downtown area. The city's approval was one of the lasts step, following state and county sign-offs on the incentives.
In all, Apple will save about $89 million in state and local taxes over the next decade, but by the same token the company is expected to spend around $1 billion on the facilities and staff, as well as generate $343 million in economic activity during that same period. Out of $105 million in tax revenue that would normally have been collected over the decade, the state and local governments will get only $16 million, reports the Reno Gazette-Journal.
The construction of the facilities is expected to create around 580 temporary jobs, with the data center taking the lion's share. The site to be used by Apple for the data centre covers 350 acres east of Sparks in the Reno Technology Park, making it twice the size of Apple's previously-announced data center in Prineville, Ore. -- a town that was seen to be in competition with Reno for the new facilities.
"[Apple] has lots of options," Nevada Office on Economic Development spokesperson Steve Hill told the Reno newspaper. "The Prineville area remains more competitive than northern Nevada." The new facilities, known as "Project Jonathan," will create 41 new full-time jobs and 200 long-term contract jobs.
All that remains is for a monthlong approval to go through the governor's office, according to Hill, meaning that construction could begin as early as August. Apple has indicated that the new data center will be very "green" in its energy use, and the Reno Technology Park's commitment may have helped seal the deal.
The park plans to provide 300 megawatts of power from natural gas and another 140 megawatts from wind, geothermal and solar. The Apple facility will eventually require up to 70 megawatts all by itself, but Apple is likely to dedicate some of the land it bought to power-generation facilities of its own as it has done or will do in Prineville and its main facility in Maiden, NC.